Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User Joined: 10/12/2005 Posts: 90
|
Hey guys
When you open a margin account, how much does that mean i can borrow from the broker to trade with?
Matt
|
|
Gold Customer
Joined: 12/24/2004 Posts: 33
|
Normally, if you deposit $5000 (for instance), you can borrow $5000, for a total of $10,000.
But using the entire $5000 margin amount is 'pushing it'. If the position moves against you, the broker will require more cash from you pretty quickly (a margin call).
|
|
Registered User Joined: 10/7/2004 Posts: 2,126
|
If they flag your account as a day trading pattern, then the buying power will quadruple, but you will be require to have a minimun of $25,000 cash in your account. Any amount below that will resolve in maintenance calls. For how you will be flag as daytrader pattern, please contact your broker - they should be able to explain. good luck
|
|
Guest-1 |